SOURCE: Creditnet

Creditnet

September 23, 2014 18:56 ET

Creditnet's Top Finance Tips for Teens

SEATTLE, WA--(Marketwired - Sep 23, 2014) - Today's financially challenging era has called for a financially smarter generation. Price hikes, rise in unemployment rates, and other economic events have shifted the once rich countries of the world into budget-tightened nations. If you want your children to be prepared for the financial burdens they may encounter as they grow up, it is best to start teaching them as early as possible. According to Creditnet, a leading credit expert, here are the most important tips for teenagers to learn:

1. Establish Goals

It's impossible for anyone to achieve anything noteworthy without something to aim for. Having goals is important for a person to keep moving forward. It gives them motivation and a framework to work around on. Imagine trying to save up for a new game console without any set daily or weekly goals on how much money you are actually saving.

When establishing goals, teenagers should focus on making goals that are specific, measurable, and attainable. They should also be sure to update them from time to time to remain relevant to the financial situation.

How much should you save per week or month? Is it a reasonable target based on how much you earn or spend during that time frame? Is your goal enough to supplement your chosen future lifestyle? If there are financial emergencies, can you handle them without capsizing a credit card?

2. Use Credit Responsibly

A common gift during teenage years is your first ever credit card. As a parent, it seems fulfilling to give your child a means of never going hungry or being able to buy everything they need anytime. But with great power comes great responsibility. And unfortunately, most teenagers are unable to handle the responsibility and ultimately sink themselves in debt.

Since your child's still a teen, they'll be unable to apply for a credit card until they turn 21. Before they reach this age, teach them smart practices when it comes to using credit cards. Emphasize the importance of only buying what he/she can pay for in time. Let them borrow it when they go out and monitor their purchases through credit card statements online.

3. Necessity vs. Desire

Most parents tend to smother their children with toys, gadgets, and whatever they can think of. As teenagers, they retain this state of mind that they can get whatever they want with little to no effort at all. Teach them to distinguish between wants and needs at an early age. Although it's not bad to buy your teen a new pair of shoes every year, buying them the latest iPhone after every release seems impractical and unnecessary.

Branded products are also a no-no for teenagers with tight budgets. It's common for teenagers to want to own the newest or most expensive brands of clothing or gadgets out there just to impress peers or keep up with them. However, it is better to allocate the budget on cheaper alternatives that offer the same level of quality and functionality.

About Creditnet:

Creditnet is an authority credit card comparison site that offers innovative comparison tools to help users find the best credit card for their needs. In addition, the Creditnet Credit Talk Forum is a community of over 100,000 members that discuss credit cards, credit, debt, and credit repair daily.

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